Spotify Technology S.a. · NYSE:SPOT
Spotify Technology — Q3 2026 Earnings Presentation
35 slides from Spotify Technology's earnings presentation, Oct 22, 2026
Slide 1: Q3 2026 Update
Q3 2026 Update October 22nd, 2026
Slide 2: Table of Contents
Table of Contents Key Highlights Financial Summary MAUs & Subscribers Product & Platform Outlook Financial Statements Executive Summary p.03 p.04 p.06 p.13 p.16 p.19 p.22
Slide 3: Executive Summary
Executive Summary USER & FINANCIAL SUMMARY Q3 2025 Q2 2026 Q3 2026 Y/Y Q/Q USERS (M) Total Monthly Active Users ("MAUs") 713 777 788 11% 1% Premium Subscribers 281 300 306 9% 2% Ad-Supported MAUs 446 494 499 12% 1% FINANCIALS (€M) Premium** 3,835 4,331 4,487 17% 4% Ad-Supported** 437 446 482 10% 8%
Slide 4: Key Highlights
* Constant Currency adjusted measures and Free Cash Flow are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. Subscriber outperformance with continued double-digit MAU growth Taste Profile launched for Premium Subscribers
Slide 5: Key Highlights: Actuals vs. Guidance
Results Q3 2026 Actuals Guidance Total Revenue (€B) In-Line €5.0 €5.0 Gross Margin Above 33.0% 32.9% Operating Income (€M)* Above €672 €670 Key Highlights: Actuals vs. Guidance Users Results Q3 2026 Actuals Guidance Monthly Active Users (M) In-Line 788 788 Premium Subscribers (M) Above 306 305 Finan
Slide 6: Financial Summary
FINANCIAL SUMMARY
Slide 7: User, Financial & Liquidity Summary
USER, FINANCIAL & LIQUIDITY SUMMARY Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Y/Y Y/Y FXN** USERS (M) Total Monthly Active Users ("MAUs") 713 751 761 777 788 11% -- Premium Subscribers 281 290 293 300 306 9% -- Ad-Supported MAUs 446 476 483 494 499 12% -- FINANCIALS (€M) Premium* 3,835 4,020 4,148 4,3
Slide 8: Revenue, Profitability, Free Cash Flow & Liquidity
Revenue Profitability Free Cash Flow & Liquidity Gross Margin was 33.0% in Q3, up 136 bps Y/Y reflecting: Premium gains driven by Revenue growth outpacing music costs net of marketplace programs, audiobooks costs and video podcast costs; and Ad-Supported gains driven by Revenue growth alongside favo
Slide 9: Revenue: Premium and Ad-Supported
Advertising business driven by automated channels Ad-Supported Revenue* grew 10% Y/Y (or 9% Y/Y constant currency**). On a constant currency basis, music advertising performance was driven by growth in impressions sold, partially offset by softness in pricing. Podcasting growth was led by sponsorshi
Slide 10: Gross Margin by Segment
Premium Gross Margin* was 34.5% in Q3, up 130 bps Y/Y. The Y/Y trend was driven by Revenue growth outpacing music costs net of marketplace programs, audiobooks costs and video podcast costs. Gross Margin Y/Y improvement driven by Premium and Ad-Supported gains Gross Margin finished at 33.0% in Q3, u
Slide 11: Operating Expenses
Operating Expenses increased ~26% Y/Y in Q3. Absent the effects of Y/Y movements in currency and Social Charges, the 19% Y/Y increase in Operating Expenses was primarily driven by an increase in marketing alongside cloud and AI spend in support of growth initiatives. As a reminder, Social Charges ar
Slide 12: Free Cash Flow
Free Cash Flow Q3 performance aids balance sheet strength Free Cash Flow* was €735 million in Q3, reflecting our higher Net Income adjusted for non-cash items, offset by unfavorable movements in net working capital. Capital expenditures decreased €17 million Y/Y to €6 million. In Q3, trailing 12 mon
Slide 13: MAUs & Subscribers
MAUS & SUBSCRIBERS
Slide 14: Monthly Active Users
Growth was driven by Q/Q gains in Rest of World, Latin America, Europe and North America Monthly Active Users (MAUs) Total MAUs grew 11% Y/Y to 788 million, up from 777 million last quarter and in-line with our guidance. Quarterly performance reflected: Y/Y and Q/Q growth across all regions 456M 574
Slide 15: Premium Subscribers
Our Premium Subscribers grew 9% Y/Y to 306 million, up from 300 million last quarter and 1 million above our guidance. Quarterly performance reflected: Y/Y and Q/Q growth across all regions Growth was driven by Q/Q gains in Latin America, Europe, North America and Rest of World Global promotional ca
Slide 16: Product & Platform
PRODUCT & PLATFORM
Slide 17: Championing authors and creators while enhancing the user experience
Championing authors and creators while enhancing the user experience Launched Creator Memberships in 34 markets, giving eligible podcast creators a new way to offer paid memberships directly to their fans on Spotify. Creators can generate recurring revenue from fans by offering exclusive content and
Slide 18: Powering a more personalized listening experience
Powering a more personalized listening experience with users in control Managed Accounts are now available to families in the U.S., U.K., Australia, France, Germany and the Netherlands, giving listeners 13 and under their own space to discover music and build their own listening experience, while pa
Slide 19: Outlook
OUTLOOK
Slide 20: Outlook for Q4'26
Outlook for Q4’26 The following forward-looking statements reflect Spotify’s expectations for Q4 2026 as of October 22, 2026 and are subject to substantial uncertainty. Total MAUs 818 million Implies the addition of approximately 30 million net new MAUs in the quarter Total Premium Subscribers 316 m
Slide 21: Webcast Information and Use of Non-IFRS Measures
Webcast Information We will host a live question and answer session starting at 8:00 a.m. ET today on investors.spotify.com. Alex Norström and Gustav Söderström, our Co-Chief Executive Officers, and Christian Luiga, our Chief Financial Officer will be on hand to answer questions. Questions can be su
Slide 22: Financial Statements
FINANCIAL STATEMENTS
Slide 23: Trending Charts: MAUs, Subscribers & Revenue by Segment
Trending Charts MAUs, Ad-Supported Users, Premium Subscribers & Revenue By Segment * Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter. ** Effective January 1, 2026, certain revenue-generating activities previously reporte
Slide 24: Trending Charts: Gross Profit, Gross Margin & Free Cash Flow
Trending Charts Gross Profit by Segment, Gross Margin by Segment & Free Cash Flow* * Free Cash Flow is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. Last Twelve Months (LTM) represents annual performance covering the p
Slide 25: Interim Condensed Consolidated Statement of Operations
Interim condensed consolidated statement of operations (Unaudited) (in € millions, except share and per share data) Three months ended September 30, 2026 June 30, 2026 September 30, 2025 Revenue 4,969 4,777 4,272 Cost of revenue 3,330 3,181 2,921 Gross profit 1,639 1,596 1,351 Research and developme
Slide 26: Interim Condensed Consolidated Statement of Financial Position
September 30, 2026 December 31, 2025 Assets Non-current assets Lease right-of-use assets 218 234 Property and equipment 190 188 Goodwill 1,118 1,083 Intangible assets 30 41 Long term investments 1,066 2,181 Restricted cash and other non-current assets 174 61 Finance lease receivables 69 69 Deferred
Slide 27: Interim Condensed Consolidated Statement of Cash Flows
Interim condensed consolidated statement of cash flows (Unaudited) (in € millions) Three months ended September 30, 2026 June 30, 2026 September 30, 2025 Operating activities Net income 518 545 899 Adjustments to reconcile net income to net cash flows Depreciation of property and equipment and lease
Slide 28: Earnings Per Share
Diluted earnings per share Net income attributable to owners of the parent 518 545 899 Fair value gains on dilutive Exchangeable Notes — — (197) Net earnings used in the computation of diluted earnings per share 518 545 702 Shares used in computation: Weighted-average ordinary shares outstanding 205
Slide 29: Revenue on a Constant Currency Basis
Three months ended September 30, 2026 September 30, 2025 IFRS Revenue 4,969 4,272 Foreign exchange effect on 2026 revenue using 2025 rates (81) Revenue excluding foreign exchange effect 4,888 IFRS Revenue year-over-year change % 16 % Revenue excluding foreign exchange effect year-over-year change %
Slide 30: Operating Expense on a Constant Currency Basis
Operating expense on a constant currency basis (Unaudited) (in € millions, except percentages) Reconciliation of IFRS to non-IFRS results Three months ended September 30, 2026 September 30, 2025 IFRS Operating expense 967 769 Foreign exchange effect on 2026 operating expense using 2025 rates (11) Op
Slide 31: Operating Income on a Constant Currency Basis
Reconciliation of IFRS to non-IFRS results Operating income on a constant currency basis (Unaudited) (in € millions, except percentages) Three months ended September 30, 2026 September 30, 2025 IFRS Operating income 672 582 Foreign exchange effect on 2026 operating income using 2025 rates (19) Opera
Slide 32: Free Cash Flow Reconciliation
Three months ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December March 31, June 30, 31, 2024 2025 2025 September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 September 30, 2026 Net cash flows from operating activ
Slide 33: Appendix
APPENDIX
Slide 34: Social Charges Sensitivity
Social Charges Sensitivity Meaningful movements in our stock price can lead to Social Charge variance Our guidance incorporates the impact of Social Charges on share-based compensation, the vast majority of which appear in Operating Expenses. The amount of Social Charges we accrue for and ultimately
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